Soybean and wheat futures on the Chicago Board of Trade (CBOT) fell sharply on Thursday, retreating from multi-month highs as signs of only limited Chinese purchases from the United States tempered optimism over renewed demand following the recent bilateral trade truce.
Corn demand also weakened as the final stage of U.S. harvest and favorable planting conditions in South America continued to pressure supply expectations.
Futures had rallied on Wednesday after reports that China suspended retaliatory tariffs on U.S. imports, including agricultural goods. However, U.S. soybean shipments remain subject to a 13% import duty.
On Thursday, the market was still awaiting confirmation of soybean purchases, while a Reuters report that China booked two cargoes of U.S. wheat suggested smaller volumes than the several hundred thousand tons initially expected.
“It’s really about the ebb and flow of emotion regarding China,” said Arlan Suderman, chief commodities economist at StoneX.
The most active soybean contract on the CBOT ended the week down 26 ¾ cents at $11.07 ½ per bushel, below Wednesday’s 16-month high of $11.37. U.S. officials said the trade truce includes China’s commitment to buy 12 million metric tons of agricultural goods during November and December.
Soybean futures on Thursday extended losses from Wednesday’s highs as modest Chinese purchases dampened earlier optimism for stronger demand following the leaders’ meeting last week. China has begun limited buying of U.S. farm goods, but traders are still waiting for substantial soybean deals after the White House announced Beijing’s pledge to purchase 12 million tons by year-end.
December soybean meal futures closed $12.10 lower at $312.70 per short ton.
December CBOT soybean oil futures fell 0.34 cents to 49.35 cents per pound.
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Nov 25 Soybeans: $10.94 (−25 ¾ cents)
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Nearby Cash: $10.35 ½ (−25 cents)
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Jan 26 Soybeans: $11.09 ¼ (−25 cents)
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Mar 26 Soybeans: $11.19 (−23 cents)
